We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Enterprise to Expand Butane Isomerization Capacity in Texas
Read MoreHide Full Article
Enterprise Products Partners L.P. (EPD - Free Report) intends to augment the capacity at its butane isomerization facility in Mont Belvieu, Texas.
The expansion comprises a 20-year, 35,000 barrel per day (bpd) fee-based, tolling agreement, backed by long-term agreement to provide butane isomerization. Currently, Enterprise is examining two options to develop butane isomerization facilities that will boost incremental capacity by about 30,000 bpd.
Enterprise’s butane isomerization facility at Mont Belvieu has a capacity of 116,000 bpd and is the largest commercial producer of high-purity isobutane in the United States. The facility comprises about 13 million barrels of aggregate isom grade normal butane, storage capacity for high-purity isobutane salt dome and 162 miles of distribution pipelines.
The process of converting normal butane into high-purity isobutene is called butane isomerization. Isobutane is used as feedstock for the petrochemical and refining industries.
The growth of petrochemical and refining industries has been very beneficial for the partnership. The facility expansion reinstates Enterprise’s focus and commitment to growth.
Since its IPO in 1998, Enterprise has successfully executed organic growth projects worth $38 billion and completed acquisitions of about $26 billion. Currently, the partnership has $9.1 billion worth of capital growth projects under construction. Low cost of capital and financial flexibility has helped it achieving one of the highest credit ratings among MLPs of Baa1 / BBB+.
Though it is estimated that Enterprise possesses solid cash flow stability from quality pipeline and storage assets and geographic diversity, volume risk and commodity price exposure can negatively impact near-term results. We are apprehensive about a volatile NGL pricing environment.
Price Performance
Enterprise’s shares have gained 2.2% against the industry’s decline of 5% in the last six months.
Zacks Rank & Key Picks
Enterprise carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector include Statoil ASA , Pioneer Natural Resources Company (PXD - Free Report) and Northern Oil and Gas Inc (NOG - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Statoil, based in Norway, is a major international integrated oil and gas company. It saw an average negative earnings surprise of 8.44% in the last four quarters.
Headquartered in Irving, TX, Pioneer Natural Resources Company is an independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 67.62% in the last four quarters.
Northern Oil and Gas, based in Minnetonka, MN, is an independent energy company. The company delivered an average positive earnings surprise of 175.00% during the same time frame.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Image: Bigstock
Enterprise to Expand Butane Isomerization Capacity in Texas
Enterprise Products Partners L.P. (EPD - Free Report) intends to augment the capacity at its butane isomerization facility in Mont Belvieu, Texas.
The expansion comprises a 20-year, 35,000 barrel per day (bpd) fee-based, tolling agreement, backed by long-term agreement to provide butane isomerization. Currently, Enterprise is examining two options to develop butane isomerization facilities that will boost incremental capacity by about 30,000 bpd.
Enterprise’s butane isomerization facility at Mont Belvieu has a capacity of 116,000 bpd and is the largest commercial producer of high-purity isobutane in the United States. The facility comprises about 13 million barrels of aggregate isom grade normal butane, storage capacity for high-purity isobutane salt dome and 162 miles of distribution pipelines.
The process of converting normal butane into high-purity isobutene is called butane isomerization. Isobutane is used as feedstock for the petrochemical and refining industries.
The growth of petrochemical and refining industries has been very beneficial for the partnership. The facility expansion reinstates Enterprise’s focus and commitment to growth.
Since its IPO in 1998, Enterprise has successfully executed organic growth projects worth $38 billion and completed acquisitions of about $26 billion. Currently, the partnership has $9.1 billion worth of capital growth projects under construction. Low cost of capital and financial flexibility has helped it achieving one of the highest credit ratings among MLPs of Baa1 / BBB+.
Though it is estimated that Enterprise possesses solid cash flow stability from quality pipeline and storage assets and geographic diversity, volume risk and commodity price exposure can negatively impact near-term results. We are apprehensive about a volatile NGL pricing environment.
Price Performance
Enterprise’s shares have gained 2.2% against the industry’s decline of 5% in the last six months.
Zacks Rank & Key Picks
Enterprise carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector include Statoil ASA , Pioneer Natural Resources Company (PXD - Free Report) and Northern Oil and Gas Inc (NOG - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Statoil, based in Norway, is a major international integrated oil and gas company. It saw an average negative earnings surprise of 8.44% in the last four quarters.
Headquartered in Irving, TX, Pioneer Natural Resources Company is an independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 67.62% in the last four quarters.
Northern Oil and Gas, based in Minnetonka, MN, is an independent energy company. The company delivered an average positive earnings surprise of 175.00% during the same time frame.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>